Business credit cards or corporate credit cards refer to those cards that are used to fulfil certain business purposes, rather than individual purposes. Lately, these credit cards have become increasingly popular because of the recognized aid that they provide to small business owners.
Driving down your total checkout bill a little makes a huge difference for small businesses. It is important to elaborate and expound on the differences between business credit cards and standard cards, and we outline and highlight the five incredible features that accompany business cards.
We also list down a few of the best business credit cards in India, alongside the features that make them outstanding. We cover and explain five main features, namely interest-free credit, death insurance cover, renewal benefits, fuel surcharge benefits and exciting reward structures that make these cards enticing.
Additionally, we mention specific credit cards that are being provided to consumers in India, because no specific feature can make a corporate credit card great. Instead, it is the accumulation of features that make these cards popular.
Each feature has one specific credit card mentioned alongside it, so that if you are interested in the feature, you can quickly look up a credit card that offers the attribute. It is important to note, however, that these are not the only credit cards that offer the below-mentioned features.
Researching into all the credit cards that offer these features, and then making a decision on which card to apply for is recommended.
1. Interest-Free Credit
Certain business credit cards in India come with interest-free credit for specific durations, and are worth looking into. If you wish to complete certain transactions with the aid of a business credit card without having to worry about the payment of additional interest charges, then this is the corporate credit card for you. The SBI Platinum Corporate Credit Card, in specific, provides cardholders with interest-free credit for a period of 20 to 50 days on retail transactions, if the outstanding amount is cleared each month.
It also provides cardholders with the flexibility of setting a new credit limit every day, week or month. This provides cardholders with the ability to learn to manage their finances better. The Bajaj Finserv RBL Bank SuperCard also lets you withdraw interest-free cash from ATMs for up to 50 days (with a processing fee of only 2.5%).
2. Death Insurance Cover
Very few corporate credit cards come with an insurance provision. This provision is great if you or your employees travel quite a bit to get work done. It eliminates the need for you to separately pay for insurance every time you travel.
With the ICICI Bank Business Advantage Black Credit Card, personal air accident death insurance covers are provided to the cardholders for up to 75 lakhs INR. Other than this, the card focuses on the concept of ‘reversals’ to entice customers.
It gives back the joining fee amount (joining fee reversal) if an employee spends 75,000 INR and above within a period of 60 days. An annual fee reversal is also provided on transactions of 750,000 INR and above during an anniversary year.
It must be noted that joining fees and annual fees, along with other rates and charges must be looked into before applying for a corporate credit card. These basic details must be borne in mind before any application for a credit card is made. Since it comes under a very basic category, we do not specifically mention it as a feature in this article.
The main reason a corporate credit card is looked into is for the benefits it provides a business. Small businesses especially might be able to survive longer with certain cashback facilities or discounts made on business transactions. The HDFC Business MoneyBack Credit Card lives up to its ‘money back’ title.
Cardholders are given VIP access to airport lounges across India (all domestic flights and international flights leaving from India). Reward points up to 3 times that of conventional business credit cards can be availed by making business-related travel, dining, accommodation and e-commerce transactions. The reward points earned after every transaction using this card can be redeemed later on in the form of air miles or cashbacks, depending on what the cardholder is more comfortable with. With this card, 100 reward points is equal to 40 INR in cashback form.
In addition to providing you with welcome rewards and letting you save up to Rs. 55,000, the Bajaj Finserv RBL Bank SuperCard also provides its members with exclusive discounts and offers from all the Bajaj Finserv partner stores. This is complemented by a 5% cashback on your down payment at any of the partner stores.
4. Fuel Surcharge
Most corporate credit cards focus on air travel benefits rather than fuel surcharges. If your business focuses primarily on travelling via fuel in the state, then fuel surcharges must be looked into. The Kotak Corporate Gold Credit Card provides cardholders with fuel surcharge waivers for transactions (made with the card) between 500 INR and 3,000 INR. It also comes with a 48-day interest-free period, during which the card’s benefits can still be availed.
5. Renewal Benefits
Investing in a corporate credit card that convinces you to renew it by providing you with certain benefits upon the renewal of the card is important as well.
The Yes Prosperity Business Credit Card provides cardholders with 7,500 reward points upon every renewal of the card. Cardholders are also provided with 4 reward points with every 100 INR spent on tour operators and travel agencies (along with dining and domestic airline travel).
It is important to specifically mention these benefits here, because not many corporate credit cards provide this offer to their owners. You can also earn 10,000 reward points if your first transaction is completed within the first 30 days of owning this card. This feature proves how easy it is to accumulate reward points with this credit card.